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SF 2981

as introduced - 91st Legislature (2019 - 2020) Posted on 02/27/2020 03:13pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to transportation; proposing an amendment to the Minnesota Constitution,
article XIV, to eliminate a population eligibility requirement for allocating
municipal state-aid street funds; making conforming and technical changes;
amending Minnesota Statutes 2018, sections 160.02, subdivision 21; 161.083;
162.09, subdivisions 1, 4; 162.12, subdivisions 1, 3; 162.13; 162.14, subdivision
1; 162.145, subdivision 1; 162.17, subdivision 1; 162.18, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

CONSTITUTIONAL AMENDMENTS

Section 1. new text beginCONSTITUTIONAL AMENDMENTS PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to the people. If the amendment
is adopted, article XIV, section 4, will read:
new text end

Sec. 4.

A municipal state-aid street system shall be constructed, improved and maintained
as public highways by municipalities deleted text beginhaving a population of 5,000 or moredeleted text end in the manner
provided by law.

new text begin article XIV, section 8, will read:
new text end

Sec. 8.

There is hereby created a municipal state-aid street fund to be apportioned as
provided by law among municipalities deleted text beginhaving a population of 5,000 or moredeleted text end. The fund shall
be used by municipalities as provided by law for the construction, improvement and
maintenance of municipal state-aid streets. The legislature may authorize municipalities to
use a part of the fund in the construction, improvement and maintenance of other municipal
streets, trunk highways, and county state-aid highways within the counties in which the
municipality is located.

Sec. 2. new text beginSUBMISSION TO VOTERS.
new text end

new text begin (a) The proposed amendment under section 1 must be submitted to the people at the
2020 general election. The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended so that the existing constitutionally
dedicated funding for municipal roads and bridges is distributed among all Minnesota cities?
new text end

new text begin Yes .
new text end
new text begin No .
new text end
new text begin "
new text end

new text begin (b) The title required under Minnesota Statutes, section 204D.15, subdivision 1, for the
question submitted to the people under paragraph (a) is "Fairness in Municipal Road and
Bridge Funding."
new text end

ARTICLE 2

CONSTITUTIONAL AMENDMENT IMPLEMENTATION

Section 1.

Minnesota Statutes 2018, section 160.02, subdivision 21, is amended to read:


Subd. 21.

Municipal state-aid streets.

"Municipal state-aid streets" includes all streets
within deleted text beginthedeleted text end cities deleted text beginhaving a population of 5,000 or more,deleted text endnew text begin that arenew text end established in accordance
with law as municipal state-aid streets.

Sec. 2.

Minnesota Statutes 2018, section 161.083, is amended to read:


161.083 MUNICIPAL TURNBACK ACCOUNT, EXPENDITURE.

Except as hereinafter provided, all money accruing to the municipal turnback account
shall be expended in accordance with rules of the commissioner of transportation in paying
a municipality deleted text beginhaving a population of 5,000 or moredeleted text end for the reconstruction and improvement
of former trunk highways, or portions thereof, that have reverted to such municipality in
accordance with law, and have become a part of the municipal state-aid street system.

Sec. 3.

Minnesota Statutes 2018, section 162.09, subdivision 1, is amended to read:


Subdivision 1.

Creation; mileage limitation; rules.

(a) There is created a municipal
state-aid street system within statutory and home rule charter cities deleted text beginhaving a population of
5,000 or more
deleted text end. The extent of the municipal state-aid street system for a city shall not exceed:

(1) 20 percent of the total miles of city streets and county roads partially or totally within
the jurisdiction of that city; plus

(2) the mileage of all trunk highways reverted or turned back to the jurisdiction of the
city pursuant to law on and after July 1, 1965; plus

(3) the mileage of county highways reverted or turned back to the jurisdiction of the city
pursuant to law on or after May 11, 1994.

(b) For purposes of this subdivision, the total miles of city streets and county roads
within the jurisdiction of a city includes all miles of county highways turned back to that
city's jurisdiction on or after May 11, 1994.

(c) The system shall be established, located, constructed, reconstructed, improved, and
maintained as public highways partially or totally within such cities under rules, not
inconsistent with this section, made and promulgated by the commissioner as hereinafter
provided.

Sec. 4.

Minnesota Statutes 2018, section 162.09, subdivision 4, is amended to read:


Subd. 4.

Federal census is conclusive.

(a) In determining whether any city has a
population of 5,000 or more, the last federal census shall be conclusive, except as otherwise
provided in this subdivision.

(b) The governing body of a city may contract with the United States Bureau of the
Census to take a special census. A certified copy of the results of the census shall be filed
with the appropriate state authorities by the city. The result of the census shall be the
population of the city for the purposes of any law providing that population is a required
qualification for distribution of highway aids under chapter 162. The special census shall
remain in effect until the next federal census is completed and filed. The expense of taking
the special census shall be paid by the city.

(c) If an entire area not heretofore incorporated as a city is incorporated as such during
the interval between federal censuses, its population shall be determined by its incorporation
census. The incorporation census shall be determinative of the population of the city only
until the next federal census.

(d) The population of a city created by the consolidation of two or more previously
incorporated cities shall be determined by the most recent population estimate of the
Metropolitan Council or state demographer, until the first federal decennial census or special
census taken after the consolidation.

(e) The population of a city that is not receiving a municipal state-aid street fund
apportionment shall be determined, upon request of the city, by the most recent population
estimate of the Metropolitan Council or state demographer. A municipal state-aid street
fund apportionment received by the city must be based on this population estimate until the
next federal decennial census or special census.

(f) A city that is found in the most recent federal decennial census to have a population
of less than 5,000 is deemed for the purposes of this chapter deleted text beginand the Minnesota Constitution,
article XIV,
deleted text end to have a population of 5,000 or more under the following circumstances: (1)
immediately before the most recent federal decennial census, the city was receiving municipal
state-aid street fund distributions; and (2) the population of the city was found in the most
recent federal decennial census to be less than 5,000. Following the end of the first calendar
year that ends in "5" after the decennial census and until the next decennial census, the
population of any city must be determined under paragraphs (a) to (e).

Sec. 5.

Minnesota Statutes 2018, section 162.12, subdivision 1, is amended to read:


Subdivision 1.

Estimate of accruals.

By December 15 of each year the commissioner
shall estimate the amount of money that will be available to the municipal state-aid street
fund during that fiscal year. The amount available is based on actual receipts at the time of
the allocation calculation, the unallocated fund balance, and the projected receipts for the
remainder of the fiscal year. The total available, except for deductions as provided deleted text beginhereindeleted text endnew text begin
in this section
new text end, shall be apportioned by the commissioner to deleted text beginthedeleted text end cities deleted text beginhaving a population
of 5,000 or more
deleted text end as deleted text beginhereinafterdeleted text end providednew text begin in this chapternew text end.

Sec. 6.

Minnesota Statutes 2018, section 162.12, subdivision 3, is amended to read:


Subd. 3.

Disaster account.

(a) After deducting administrative costs as provided in
subdivision 2, the commissioner shall set aside each year a sum of money equal to two
percent of the remaining money in the municipal state-aid street fund to provide for a disaster
account; provided, that the total amount of money in the disaster account must never exceed
three percent of the total sums to be apportioned to deleted text beginthedeleted text end statutory and home rule charter cities
deleted text begin having a population of 5,000 or moredeleted text end. The disaster account must be used to provide aid to
any city encountering disaster or unforeseen event affecting the municipal state-aid street
system of the city, and resulting in an undue and burdensome financial hardship.

(b) Any city desiring aid by reason of disaster or unforeseen event shall request aid in
the form required by the commissioner. Upon receipt of the request the commissioner shall
appoint a board consisting of two representatives of the cities, who must be either a city
engineer or member of the governing body of a city, from cities other than the requesting
city, and a representative of the commissioner. The board shall investigate the matter and
report its findings and recommendations in writing to the commissioner.

(c) Final determination of the amount of aid, if any, to be paid to the city from the disaster
account must be made by the commissioner. Upon determining to aid the city, the
commissioner shall certify the amount payable to the fiscal officer of the city. Money so
paid must be expended on the municipal state-aid street system in accordance with rules of
the commissioner.

Sec. 7.

Minnesota Statutes 2018, section 162.13, is amended to read:


162.13 FORMULA FOR APPORTIONMENT TO CITIES.

Subdivision 1.

Factors in formula.

After deducting for administrative costs and for the
disaster fund and research account as deleted text beginheretoforedeleted text end providednew text begin in section 162.12new text end, the remainder
of the total sum provided for in section 162.12, subdivision 1, shall be identified as the
apportionment sum, and shall be apportioned by the commissioner to deleted text beginthedeleted text endnew text begin statutory and home
rule charter
new text end cities deleted text beginhaving a population of 5,000 or more,deleted text end in accordance with the following
formula:

(1) an amount equal to 50 percent of deleted text beginsuchdeleted text endnew text begin thenew text end apportionment sum shall be apportioned
among the cities deleted text beginhaving a population of 5,000 or moredeleted text end so that each such city shall receive
of such amount the percentage that its money needs bears to the total money needs of all
such citiesdeleted text begin.deleted text endnew text begin; and
new text end

(2) an amount equal to 50 percent of deleted text beginsuchdeleted text endnew text begin thenew text end apportionment sum shall be apportioned
among the cities deleted text beginhaving a population of 5,000 or moredeleted text end so that each such city shall receive
of such amount the percentage that its population bears to the total population of all such
cities. For purposes of this subdivision, the population of a city is the greater of 5,000 or
the number calculated under section 162.09, subdivision 4, paragraph (a), (b), (c), (d), or
(e).

Subd. 2.

Money needs defined.

For the purpose of this section money needs of each
city deleted text beginhaving a population of 5,000 or moredeleted text end are defined as the estimated cost of constructing
and maintaining over a period of 25 years the municipal state-aid street system in such city.
Right-of-way costs and drainage shall be included in money needs. Lighting costs and other
costs incidental to construction and maintenance, or a specified portion of such costs, as set
forth in the commissioner's rules, may be included in determining money needs. To avoid
variances in costs due to differences in construction and maintenance policy, construction
and maintenance costs shall be estimated on the basis of the engineering standards developed
cooperatively by the commissioner and the engineers, or a committee thereof, of the cities.

Subd. 3.

Screening board.

On or before September 1 of each year, the engineer of each
city deleted text beginhaving a population of 5,000 or moredeleted text end shall forward to the commissioner on forms
prepared by the commissioner, all information relating to the money needs of the city that
the commissioner deems necessary in order to apportion the municipal state-aid street fund
in accordance with the apportionment formula deleted text beginheretofore set forthdeleted text end. Upon receipt of the
information the commissioner shall appoint a board of city engineers. The board shall be
composed of one engineer from each state highway construction districtdeleted text begin,deleted text end and deleted text beginin addition
thereto,
deleted text end one engineer from each city of the first class. The board shall investigate and review
the information submitted by each city. On or before November 1 of each year, the board
shall submit its findings and recommendations in writing as to each city's money needs to
the commissioner on a form prepared by the commissioner. Final determination of the
money needs of each city shall be made by the commissioner. In the event that any city
shall fail to submit thenew text begin requirednew text end information deleted text beginprovided for hereindeleted text end, the commissioner shall
estimate the money needs of the city. The estimate shall be used in solving the apportionment
formula. The commissioner may withhold payment of the amount apportioned to the city
until the information is submitted.

Sec. 8.

Minnesota Statutes 2018, section 162.14, subdivision 1, is amended to read:


Subdivision 1.

Statement of apportionment to each city.

Upon determining the amount
of money to be apportioned to each of the cities deleted text beginhaving a population of 5,000 or moredeleted text end, the
commissioner shall deleted text beginforthwithdeleted text end send a statement of the amount to the commissioner of
management and budget and to the clerk and engineer of each such city. The amount so
apportioned to each city shall be paid by the state to the fiscal officer of the city out of the
municipal state-aid street fund as hereinafter provided and in accordance with rules
deleted text begin promulgateddeleted text endnew text begin adoptednew text end by the commissioner, not inconsistent herewith.

Sec. 9.

Minnesota Statutes 2018, section 162.145, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given them.

(b) "Eligible city" means a statutory or home rule charter city deleted text beginthat does not receive
municipal state aid under sections 162.09 to 162.14
deleted text endnew text begin with a population under 5,000 as
determined under section 162.09, subdivision 4,
new text end in the calendar year in which funds are
distributed under this section.

(c) "Maximum aid" means 3.5 multiplied by the unweighted average amount of assistance
to a city in a fiscal year.

(d) "Population" means the most recent population estimated or established as of 30
days before the date of an allocation under subdivision 4, of (i) the most recent federal
census, (ii) a special census conducted under contract with the United States Bureau of the
Census, (iii) a population estimate made by the Metropolitan Council pursuant to section
473.24, or (iv) a population estimate of the state demographer made pursuant to section
4A.02.

(e) "State-aid adjustment factor" means the greater of zero, or:

(1) 0.005; minus

(2) the number of lane miles of county state-aid highway in a city, divided by the total
number of lane miles of county state-aid highway in all eligible cities.

(f) "Total population" means the sum of populations of all eligible cities.

Sec. 10.

Minnesota Statutes 2018, section 162.17, subdivision 1, is amended to read:


Subdivision 1.

Agreements with city deleted text beginhaving population of 5,000 or moredeleted text end.

The
governing body of any city deleted text beginhaving a population of 5,000 or moredeleted text end may enter into cooperative
agreements with the county board of the county in which the city is located, providing for
the division of costs and responsibilities to be borne by each for right-of-way, construction,
improvement and maintenance, including snow removal, of county state-aid highways and
municipal state-aid streets established and located within such cities.

Sec. 11.

Minnesota Statutes 2018, section 162.18, subdivision 1, is amended to read:


Subdivision 1.

Limitation on amount.

Any city deleted text beginhaving a population of 5,000 or moredeleted text end
may in accordance with chapter 475, except as otherwise provided herein, issue and sell its
obligations for the purpose of establishing, locating, relocating, constructing, reconstructing,
and improving municipal state-aid streets therein. In the resolution providing for the issuance
of the obligations, the governing body of the municipality shall irrevocably pledge and
appropriate to the sinking fund from which the obligations are payable, an amount of the
moneys allotted or to be allotted to the municipality from its account in the municipal
state-aid street fund sufficient to pay the principal of and the interest on the obligations as
they respectively come due. The obligations shall be issued in amounts and on terms such
that the average annual amount of principal and interest due in all subsequent calendar years
on the obligations, including any similar obligations of the municipality which are
outstanding, shall not exceed 90 percent of the amount of the last annual allotment preceding
the bond issue received by the municipality from the construction account in the municipal
state-aid street fund. All interest on the obligations shall be paid out of the municipality's
normal maintenance account in the municipal state-aid street fund. Any such obligations
may be made general obligations, but if moneys of the municipality other than moneys
received from the municipal state-aid street fund, are used for payment of the obligations,
the moneys so used shall be restored to the appropriate fund from the moneys next received
by the municipality from the construction or maintenance account in the municipal state-aid
street fund which are not required to be paid into a sinking fund for obligations.

Sec. 12. new text beginEFFECTIVE DATE; APPLICATION.
new text end

new text begin If the constitutional amendment in article 1 is ratified, this article is effective January
1, 2022, and applies for municipal state-aid street funds distributed on or after that date.
new text end